As the ongoing RAMageddon continues to blast its way through the world, Xbox has once again raised prices of both Xbox Series S and Xbox Series X.
As the ongoing memory shortage fuelled by the demands of AI datacenters is expected to last until 2028 at the earliest, the price of components have thoroughly shafted consumer electronics with no clear sign of a return to norm.
Console prices have been exacerbated over the next few years by other issues, too. The United States unsightly tariffs, the invasion of Iran, and other factors have caused continued price hikes to gaming hardware. Xbox isn’t alone, either – PlayStation, Nintendo and even Steam Deck have seen major price hikes – although it’s hard to feel bad for Microsoft’s gaming division when Microsoft itself pushes for AI so heavily.
All of this has led to a ghastly situation. Xbox Series S, the budget-focused, digital-only little brother of the Series X, is no longer a budget machine. While it launched at just $299, the 1080p-targeting machine now costs $500.
For those who haven’t been following the rise in console prices, the base model Series S now costs the same as a base model Xbox Series X did during its 2020 launch. Of course, Series X has also seen price hikes as well, jumping from the aforementioned $500 to an eye-watering $800, almost the price of a PlayStation 5 Pro. (Which we fully expect will see another price hike this year as well.)
In their blog post, Xbox announced that “console storage and memory prices have increased by more than 2.5x”. Additionally, the company expected “another doubling by the fall of 2027”. The reality is that AI-driven memory consumption is continuing to bring havoc to consumer electronics, and it’s not limited to gaming either.
Apple is increasing the price of its MacBooks after introducing the budget MacBook Neo. The price of smartphones is increasing. Everything uses memory, even a Kindle, a smartwatch, TVs, your home assistant – and it’s all going up.
While game prices also climb – yes, GTA 6’s $80 price tag isn’t surprising, but still not ideal – the reality is that the average consumer is now being priced out of gaming. Unlike film, comics, or novels, gaming has a sizable entry cost, and it’s skyrocketing right now.
Xbox Series S, for all the console’s flaws, was built to be the answer to that. Series S may be small, weak, and digital-only, but it was supposed to be the cheap option for gamers. “Sure, play GTA 6! Play Halo: Campaign Evolved! Play Gears of War: E-Day! Just at lower settings. It’s cheap!” Now it’s not cheap, and it’s starting to feel like nothing ever will be again.
